Catastrophe modeling in financial study

by Yi Zhang

Plus magazine has an interesting introduction of modeling of catastrophe in insurance business in its latest issue. I am impressed by the fact that the single criteria of roof drift ratio plays such important role in this area, since many structures’ failure are not governed by this parameter, or at least not only by this one. Another interesting point is that it looks like spectrum does not matter much in the picture. Maybe putting too much factors in the problem does not help the insurance company to see the trend behind.

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